Las Vegas real estate in 2012 will no doubt be a wild and wacky and an unpredictable market resulting in broken crystal balls as it has been for the last 5 years. Â This I am sure of.
MyÂ 2012 Las Vegas real estate market trendsÂ predictions will depend on several factors:
- Steady interest rates
- Steady underwriting guidelines (LOL!)
- Current laws
- Current market conditions
This final part of the series will go over financing types.
As you can see from the graph, the percentage of all cash residential resale home purchases in the Las Vegas Valley has increased dramatically from 7.4% in 2006 to 52.1% of all resale transactions in 2012.
I think as we move right along in 2012, we will see a slightly higher of cash transactions due to the low inventory situation that has been around for quite a while but will intensify by AB 284. Â Las Vegas home sellers will probably be more inclined to accept a cash offer that may be slightly lower than a financed offer if a possibility of a low appraisal is a concern.
Not sure where we are going to be headed as far as the percentages of conventional/FHA lending goes in Las Vegas. Â I think that acceptance of FHA offers may be on the decline due to appraisal issues HOWEVER if an appraisal issue occurred with a conventional loan it is possible the buyers could switch to FHA so they could bring less cash in. Â The verdict on how this one plays out will not come in until the end of the year!
I am about 90% sure that cash will remain king and grow in the percentage of transactions in the Las Vegas real estate market UNLESS prices go up too quick. Â If prices go up too quick, the cash buyers will simply leave the market and wait for lienholders to figure out the whole AB 284 thingy.